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Institutional Capacity

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Institutional Capacity

InstitutionClaim Cited

PDVSA's institutional hollowing

Venezuela turned a professionally autonomous national oil company into a direct instrument of executive, fiscal, social, and political action; the change redistributed oil income but fused roles, expelled expertise, weakened reinvestment and oversight, and left the state more vulnerable when prices, production, finance, and sanctions turned against it.

How can a state make a national oil company answer to democratic purposes without dissolving the technical, financial, and evidentiary boundaries that let it keep producing for the public?